On Your Behalf

On Your

Behalf

At the start of 2021, the industry had planned for a challenging and highlyproductive year. Little did we imagine the supply chain issues that we are now facing. Even by mid-January, the industry was beginning to feel the strain of various issues. This is shown by the results of the 1Q OESA Automotive Supplier Barometer™, which highlighted the following concerns for the year ahead:

• The inability to fulfill customer volumes

Shortages of input materials, particularly semiconductors, has impacted the supply base’s ability to meet customer demand. The price of available commodities has risen drastically, squeezing margins.

• Implementation of new government regulations

Suppliers continue to pay tariffs on Chinese imports and imported steel and aluminum; the new “green” initiatives have left the supply base uncertain of the changes they will have to make; and government stimulus has led to increased absenteeism on the plant floor. After the Barometer survey was completed, additional challenges are further impacting the industry, including severe weather and power outages, resin allocation and increasingly congested ports on both the east and west U.S. coasts. Together with the MEMA Advocacy team, OESA is working on your behalf to address these and many other issues. We are monitoring the shortage issues and working with organizations at every step within supply chain to minimize the impact on suppliers. In Washington, D.C., we are working with the Biden Administration and members on the Hill to promote industry concerns. The Biden Administration recently announced an urgent 100-day supply chain study to look at critical supply chain items, such as semiconductors and large-scale batteries for EV’s. Although this is positive news for North American industry, shorter term we will continue to be faced with the ongoing supply chain issues. Once again, we are facing challenging times. However, by addressing these issues head on, we continue to be the manufacturing engine for the U.S. and the region. From a recent I H S study commissioned by MEMA, motor vehicle suppliers contribute almost 1 million direct jobs and 2.5% of GDP in the U.S. As we enter year-two of the pandemic, I encourage all of you to recognize the amazing contributions of your organizations and all that you do to keep people safe and working when faced with adversity. Your contributions and leadership are appreciated, and it is an honor for OESA to champion your interests. Thank you for your trust and confidence. As always, please feel free to contact me at 248.430.5963 or jfream@oesa.org.

Julie A. Fream President and CEO OESA